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Weekend reports had suggest a new tax raid could see those earning more than £100,000 stripped of their higher rate tax relief altogether.

This would save the Treasury an estimated £3.6billion a year and appear to be a taking from the rich to give to the poor - ostensibly in the form of a welcome tax break for lower-earners. Families would save £500 on the income tax currently paid for earnings between £7,500 and £10,000 under the plans.

But according to the Financial Times, the annual allowance is seen as an easier way to save money and pay for the reforms.

Ministers had lengthy consultations with the pensions industry before reducing the annual allowance in 2011 and were believed to be considering a £40,000 cap.

In the end, they caved in and settled on £50k. Any move in the March Budget would likely see another £10,000 swiped off the annual saving limit.

Adrian Walker, a pension expert at Skandia, says: 'Slashing the annual allowance available on pensions is a real possibility.

'The government seem determined to find a way to increase the personal allowance to £10,000, and reducing the pension annual allowance will mainly affect those that are more affluent.'

The key quartet of David Cameron, Nick Clegg, Chancellor George Osborne and Chief Secretary to the Treasury Danny Alexander are believed to be discussing the various tax relief reform possibilities as they thrash out the details of the next month's Budget.

The Treasury pays out some £7billion a year in higher rate tax relief. In order to encourage retirement saving, the taxman tops up contributions into a registered pension schemes by 20p in the pound. So savers only need to pay 80p to see £1 go into their pot.

A source close to the Mr Osborne told the FT: '[Reducing the annual allowance] is being looked at, it is definitely a good way to be able to raise money to get towards the £10,000 tax rate.'

Mr Alexander told the Daily Telegraph last week sent a message to 'people with very large incomes who are paying very large pension'. He said: ‘The country cannot afford to give you all the tax relief.’